Trudeau, premiers unite against potential tariffs, while Smith withholds support

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OTTAWA — No one region will bear the brunt of a Canadian response to potential 25 per cent tariffs imposed by the United States in the coming days, Prime Minister Justin Trudeau said Wednesday, but confirmed all options for retaliation measures remain on the table.

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His words, following a closed-door meeting with the country’s 13 premiers, did nothing to alleviate the concerns of Alberta Premier Danielle Smith, who refused to sign onto the leaders’ joint statement at the same time officials are trying to emphasize unity. Smith said she doesn’t support Ottawa’s plan in dealing with the threatened tariffs, calling it “destructive” to Alberta.

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The leaders met ahead of Donald Trump’s inauguration in five days to discuss potential responses to U.S. tariffs, which leaders say would devastate Canadian jobs.

Smith, who was not present in Ottawa for the meeting and is reportedly vacationing in Panama, said in her own statement that federal officials “continue to publicly and privately float the idea of cutting off energy supply to the U.S. and imposing export tariffs on Alberta energy”.

“Until these threats cease, Alberta will not be able to fully support the federal government’s plan in dealing with the threatened tariffs,” she wrote.

“Alberta will simply not agree to export tariffs on our energy or other products, nor do we support a ban on exports of these same products. We will take whatever actions are needed to protect the livelihoods of Albertans from such destructive federal policies.”

The chair of Canada’s premiers, Doug Ford, said while he respects that Smith must do what she believes is best for her jurisdiction, national interests cannot be ignored.

“Protect your jurisdiction, but country comes first,” he told reporters at the leaders’ closing news conference.

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“Canada’s a priority and I don’t believe in jeopardizing one sector or another. Premier Smith’s oil is Ontario’s autos-sector.” He said all regions will be affected if U.S. tariffs come and exempting one region from the country’s counter-measures won’t work.

“We need to be united.”

Prime Minster Justin Trudeau commended Ford, saying Trump is taking aim at one industry in Canada with his threats, which is Ontario’s auto-sector.

“It’s not the Alberta oil industry.”

Heading into Wednesday’s meeting, Saskatchewan Premier Scott Moe said he opposed banning energy exports or applying export tariffs, saying “it would be the most divisive conversation that this nation would ever have.”

As he left, he confirmed that his position had not changed, despite the fact he signed onto the statement with other premiers and Trudeau, which stated they are committed to “continuing to work together on a full range of measures to ensure a robust response to possible U.S. tariffs, including supporters for sectors, businesses and individuals.”

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“If the federal government implements retaliatory measures, it will ensure the rapid availability of substantial resources that effectively mitigate economic impacts to workers and businesses,” it read.

“This includes, but is not limited to, the distribution of revenues from potential retaliatory tariffs as quickly as possible. They agreed to take a collaborative approach to U.S. engagement that recognizes the unique economic needs of all provinces and territories.”

Heading into Wednesday’s meeting, Smith made her case against the possible blocking of energy exports to the U.S. publicly after taking a trip to shake hands with Trump at his Mar-a-Lago estate in Florida, which raised some eyebrows among Canadian officials about how unified of a front Canadian premiers were presenting.

A senior government source, speaking on the condition of anonymity, said that during the meeting several premiers made the point: “Let’s not negotiate against ourselves.”

The leaders discussed the need to bring any concerns they have to the group first, rather than “run to a microphone.”

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When it comes to preparing a package of retaliatory tariffs, the source said the list of U.S. goods targeted would first be subject to a consultation period. Whether Canada would move in phases all depends on how the incoming administration acts.

Shutting down the flow of electricity or oil south of the border would be “very difficult,” the source said, adding there would be other ways to drive up U.S. costs, such as through increasing export permit fees.

Trudeau had said there were two main themes on the agenda. First, opportunities to expand and deepen partnerships with the Americans, and secondly, Canada’s response to potential tariffs.

Participating on the federal side was Finance Minister Dominic LeBlanc, Foreign Affairs Mélanie Joly and Canada Ambassador to the United States, Kristen Hillman. Smith and British Columbia Premier David Eby are joining virtually.

As Smith appeared on screen, Quebec Premier Francois Legault, who was speaking with other premiers quipped, “Is she in Mar-a-Lago?”

For weeks, federal and provincial leaders have been making the case to governors and everyday Americans, including through TV appearances, that slapping tariffs on Canadian goods would be bad for the U.S.

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On Wednesday, Energy and Natural Resources Minister Jonathan Wilkinson, the latest of Trudeau’s cabinet ministers to travel to Washington, warned in a speech to the Woodrow Wilson International Center for Scholars that should the U.S. apply tariffs to Canada it would drive up food and energy prices.

“In the Midwest, for example, gas prices could increase by up to 75 cents a gallon with the imposition of tariffs,” he said in his speech.

In an op-ed published Wednesday in The Hill, Legault argued “that tariffs of 25 per cent on exports from Canada and Mexico would reduce American GDP by at least 1 per cent over one year, not to mention inflation.”

“Tariffs of 25 per cent would therefore only result in increasing the prices of beer cans, car parts, airplane parts and a host of other products for American consumers and businesses,” he wrote.

He then pointed to how Quebec is a major supplier for the American military aviation industry, such as engines, landing gear and flight simulators.

Legault also emphasized one of Quebec’s greatest assets: its electricity. The province exports its electricity to the U.S., including via a transmission line to New York State.

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“This clean, dependable, and cheap electricity is an extraordinary advantage for New Yorkers and their businesses. It lowers the cost of energy for Trump Tower, to give just one example.”

Foreshadowing what ended up being an eventuality by the end of the day, Prince Edward Island Premier Dennis King said getting everyone to agree on the best approach is easier said than done.

“It’s hard to bring 13 premiers and the prime minister together and agree to the colour of Cheezies,” he said.

“But I do think at our root, we are about trying to do what’s best for Canada, and I think we’re going to try to find a very unique way to get to that today, or at least, I hope so.”

As premiers assembled in Ottawa, Public Safety Minister David McGuinty and Immigration Minister Marc Miller told reporters the RCMP and Canada Border Services Agency (CBSA) were deploying additional drones, two leased Apache helicopters and surveillance towers at the Canada-U.S. border.

“These will help us to further enhance our border surveillance and our intelligence operations, again with our American partners, as further proof of our strong relationship with the United States,” McGuinty told reporters.

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Trump made his tariff threat after warning Canada and Mexico to take steps to stop the flow of migrants and the deadly drug fentanyl to the U.S. Canadian officials say while they take Trump’s concerns seriously, they reject the notion that Canada’s border is where the problem lies.

On Wednesday, McGuinty called on all parties to set aside partisanship when discussing Canada’s southern border.

“We’re not interested in drama, we’re interested in making progress and showing the newly elected American government that we’re serious about our border relationship.”

“We are hopeful, and remain hopeful, that the new incoming (Trump) administration will understand just how incredibly serious we are on this northern border.”

RCMP Deputy Commissioner Bryan Larkin detailed how the force had leased the two attack helicopters for $5.3 million and they would be operational at the border as of Jan. 17.

He also said the RCMP was adding 60 drones to its border surveillance fleet shortly.

National Post, with additional reporting from The Canadian Press

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